North Dakota Administrative Code

1. For any ordinary life insurance policy delivered or issued for delivery in this state on and after January 1, 2005, that utilizes the same premium rates and charges for male and female lives or is issued in circumstances where applicable law does not permit distinctions on the…

If any provision of this chapter or its application to any person or circumstance is for any reason held to be invalid, the remainder of the chapter and the application of the provision to other persons or circumstances shall not be affected. History: Effective March 1, 2004. Gen…

1. "2001 CSO mortality table" means that mortality table consisting of separate rates of mortality for male and female lives developed by the American academy of actuaries commissioners standard ordinary task force from the valuation basic mortality table developed by the society…

At the election of an insurer for each calendar year of issue, for any one or more specified plans of insurance and subject to satisfying the conditions stated in this chapter, the 2001 CSO preferred class structure mortality table may be substituted in place of the 2001 CSO smok…

1. For each plan of insurance with separate rates for preferred and standard nonsmoker lives, an insurer may use the super preferred nonsmoker, preferred nonsmoker, and residual standard nonsmoker tables to substitute for the nonsmoker mortality table found in the 2001 CSO mortal…

1. "2001 CSO mortality table" means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American academy of actuaries CSO task force from the valuation basic mortality table developed by the society of actuaries individual l…

The minimum mortality standard for pre-need life insurance contracts for determining reserve liabilities and nonforfeiture values for both male and female insureds shall be the ultimate 1980 CSO. History: Effective January 1, 2009. General Authority: NDCC 28-32-02 Law Implemented…

1. The interest rates used in determining the minimum standard for valuation of pre-need life insurance shall be the calendar year statutory valuation interest rates as defined in North Dakota Century Code section 26.1-35-04. 1 2. The interest rates used in determining the minimu…

1. The method used in determining the standard for the minimum valuation of reserves of pre-need life insurance shall be the method defined in North Dakota Century Code section 26.1-35-02. 2. The method used in determining the standard for the minimum nonforfeiture values for pre…

1. For pre-need life insurance policies issued on or after the effective date of this chapter and before January 1, 2012, the 2001 CSO may be used as the minimum standard for reserves and minimum standard for nonforfeiture benefits for both male and female insureds. 2. If an insu…

This chapter is applicable to pre-need life insurance policies and certificates and similar contracts and certificates issued on or after January 1, 2009. History: Effective January 1, 2009. General Authority: NDCC 28-32-02 Law Implemented: NDCC 26.1-35-02 3…

As used in this chapter: 1. "1983 GAM Table" means that mortality table developed by the society of actuaries committee on annuities and adopted as a recognized mortality table for annuities in December 1983 by the national association of insurance commissioners. 2. "1983 Table '…

1. Except as provided in subsections 2 and 3, 1983 Table "a" is recognized and approved as an individual mortality table for valuation and, at the option of the company, may be used for purposes of determining the minimum standard of valuation for any individual annuity or pure e…

In using the 2012 IAR Mortality Table, the mortality rate for a person age x in year (2012 + n) is calculated as follows: qx2012+n = qx2012(1-G2x)n The resulting qx2012+n shall be rounded to three decimal places per 1,000 (e.g., 0.741 per 1,000). Also, the rounding shall occur ac…

1. Except as provided in subsections 2 and 3, the 1983 GAM Table and the 1983 Table "a" and the 1994 GAR Table are recognized and approved as group annuity mortality tables for valuation and, at the option of the company, any one of these tables may be used for purposes of valuat…

In using the 1994 GAR Table, the mortality rate for a person age x in year (1994 + n) is calculated as follows: qx 1994+n= qx 1994(1 - AAx)n where the qx 1994 and AAx are as specified in the 1994 GAR Table. History: Effective September 1, 1999. General Authority: NDCC 28-32-02 La…

If any provision of this chapter or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the regulation and the application of such provision to other persons or circumstances is not affected thereby. History: Effective Jan…

For the purpose of sections 45-04-10-01 through 45-04-10-08: 1. "Advertisement" is material designed to create public interest in life insurance or annuities or in an insurer or in an insurance agent or agency, or to induce the public to purchase, increase, modify, reinstate, or …

1. This chapter applies to any advertisement of life insurance or an annuity product intended for dissemination in this state and which advertisement is disseminated in any manner by or on behalf of an insurance company, agency, agent, or broker. 2. All advertisements, regardless…

1. The information required to be disclosed by this chapter may not be minimized, rendered obscure, or presented in an ambiguous fashion or intermingled with the text of the advertisement so as to be confusing or misleading. 2. No advertisement may omit material information or us…

1. The name of the insurer, insurance agency, agent, or broker must be clearly identified on all advertisements, and if any specific individual policy is advertised it must be identified either by form number or other appropriate description. An advertisement may not use a trade …

1. An advertisement which is intended to be seen or heard beyond the limits of the jurisdiction in which the insurer is licensed may not imply licensing beyond such limits. 2. An advertisement may state that an insurer is licensed in the state where the advertisement appears, pro…

An advertisement may not contain statements, pictures, or illustrations which are false or misleading, in fact or by implication, with respect to the assets, liabilities, insurance in force, corporate structure, financial condition, age or relative position of the insurer in the …

Each insurer shall maintain at its home or principal office a complete file containing a specimen copy of every printed, published, or prepared advertisement of its individual policies and specimen copies of typical printed, published, or prepared advertisements of its blanket, f…

It is not intended that this chapter conflict with or supersede any rules currently in force or subsequently adopted in this state governing specific aspects of the sale or replacement of life insurance including, but not limited to, rules dealing with life insurance cost compari…

1. No licensed life insurer shall, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with this department if, by the terms of the reinsurance agreement, in substance or effect, any of the following conditions exist: a. The primary…

1. No reinsurance agreement or amendment to any reinsurance agreement may be used to reduce any liability or to establish any asset in any financial statement filed with this department, unless the agreement, amendment, or a letter of intent has been duly executed by both parties…

Notwithstanding section 45-04-11-01, licensed life insurers may continue to reduce liabilities or establish assets in financial statements filed with this department for reinsurance ceded under types of reinsurance agreements described in section 45-04-11-01, provided: 1. The agr…

This chapter shall apply to all life insurance policies, with or without nonforfeiture values, issued on or after January 1, 2000, subject to the following exceptions and conditions: 1. Exceptions. a. This chapter shall not apply to any individual life insurance policy issued on …

For purposes of this chapter: 1. "Basic reserves" means reserves calculated in accordance with North Dakota Century Code section 26.1-35-05. 2. "Contract segmentation method" means the method of dividing the period from issue to mandatory expiration of a policy into successive se…

reserves. 1. At the election of the company for any one or more specified plans of life insurance, the minimum mortality standard for basic reserves may be calculated using the 1980 CSO valuation tables with select mortality factors, or any other valuation mortality table adopted…

nonlevel gross premiums or guaranteed nonlevel benefits, other than universal life policies. 1. Basic reserves. Basic reserves shall be calculated as the greater of the segmented reserves and the unitary reserves. Both the segmented reserves and the unitary reserves for any polic…

premium universal life insurance policies that contain provisions resulting in the ability of a policy owner to keep a policy in force over a secondary guarantee period. 1. General. a. Policies with a secondary guarantee include: (1) A policy with a guarantee that the policy will…

1. "Active duty" means full-time duty in the active military service of the United States and includes members of the reserve component such as the national guard and reserve while serving under published orders for active duty or full-time training. The term does not include mem…

1. This chapter applies to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States armed forces. This rule shall not apply to solicitations or sales involving; a. Credit insurance;…

installation. 1. The following acts or practices when committed on a military installation by an insurer or insurance producer with respect to the in-person, face-to-face solicitation of life insurance are declared to be false, misleading, deceptive, or unfair: a. Knowingly solic…

location. 1. The following acts or practices by an insurer or insurance producer constitute corrupt practices, improper influences, or inducements and are declared to be false, misleading, deceptive, or unfair: a. Submitting, processing or assisting in the submission or processin…

As used in this chapter: 1. "Certificate of self-insurance" means the certificate issued by the commissioner authorizing a person to be a self-insurer. 2. "Commissioner" means the insurance commissioner of North Dakota. 3. "Person" or "persons" means any individual, partnership, …

Only persons in whose name one or more motor vehicles are registered may qualify as self-insurers. Such persons must file satisfactory evidence that they are possessed and will be continued to be possessed of the ability to provide for the prompt and efficient administration of a…

The commissioner will not issue a certificate of self-insurance until the person attempting to qualify as a self-insurer shall have filed all of the following with the commissioner: 1. A completed application for a certificate of self-insurance (Appendix I). 2. An executed undert…

If a person files sufficient evidence to satisfy the commissioner that the person is qualified to be a self-insurer under North Dakota Century Code chapter 26.1-41, the commissioner will issue a certificate of self-insurance to that person. The certificate of self-insurance shall…

The commissioner may require persons seeking to qualify as self-insurers, or persons qualified as self-insurers in order to maintain their certificate of self-insurance, to make and maintain such deposits or bond as the commissioner may require to assure that those persons will m…

As a condition to the continuance of a certificate of self-insurance, every self-insurer shall transmit to the commissioner, not later than the first day of March in each year, a copy of its last annual 2 statement showing consolidated report and profit and loss statement as cert…

Repealed effective May 1, 1997.

Repealed effective May 1, 1997.

1. "Guaranteed dividends" may not be offered or provided with regard to any policy of crop/hail insurance. Dividends may be provided through a participating policy based upon the profit of the preceding year's experience for that line of insurance. 2. Payment of dividends may not…

Repealed effective May 1, 1997. 1

Upon written and notarized authorization or request of the policyholder, every insurer licensed to sell property and casualty insurance as that is defined in North Dakota Century Code section 26.1-25-02, shall mail or deliver the policyholder's loss information to the policyholde…

The policyholder's loss and claim information shall include all data in the insurer's possession pertaining to the following: 1. All closed claims and incurred losses; 2. All open claims and paid amounts, excluding therefrom any information regarding established reserves on open …

The insurer may charge a reasonable fee, not to exceed fifty cents per page of information, incurred in the production of claim and loss information to be paid by the policyholder. An insurer may apply to the insurance commissioner for approval of a higher fee for individual case…